- ASML’s second quarter order intake surged to $6.1 billion, beating expectations on strong demand for AI-driven semiconductor manufacturing.
- Despite strict US export controls, sales to China made a significant contribution to ASML’s revenues.
OUR TAKE
ASML reported a significant 54% increase in second-quarter orders to $6.1 billion, driven by the boom in artificial intelligence and its impact on demand for advanced chip-making machines. This beat analyst expectations of $4.85 billion. Despite strict US export controls, ASML recorded a substantial $430 million increase in sales to China, which accounted for almost half of its total revenue for the period. The company’s resilience is evident as it continues to thrive amid the Biden administration’s discussions of implementing tighter trade restrictions, but the current measures have not curbed China’s appetite for ASML’s semiconductor technology.
—Heidi Luo, BTW reporter
What happened
Advanced Semiconductor Material Lithography (ASML) reported a 54% increase in second-quarter orders to $6.1 billion, as the artificial intelligence boom drives demand for advanced chip-making machines.
This beat the average analyst forecast of $4.85 billion, ASML said in a statement on Wednesday. Despite strict US export controls, ASML saw a significant increase in sales to China, which rose by some $430 million and accounted for almost half of its total revenue for the period. This demonstrates China’s continued demand for semiconductor technology.
This growth comes at a time when the Biden administration is considering even tighter trade restrictions, including the possible use of the Foreign Direct Product Rule to further restrict technology transfers. However, the existing restrictions have not yet dampened the Chinese market’s demand for ASML’s products, which this quarter included mainly older, unrestricted chip manufacturing equipment.
Also read: ASML, Imec launch High NA EUV lithography test lab in Veldhoven
Also read: Who is Christophe Fouquet? CEO at ASML
Why it’s important
ASML, which has a monopoly on making the machines that produce the most advanced semiconductors, is increasingly driven by demand for the high-performance chips needed for AI applications.
“We are currently seeing strong developments in AI, which is driving most of the industry’s recovery and growth, ahead of other market segments,” Chief Executive Officer Christophe Fouquet said in the statement.
This demand is reflected in the strong sales performance of key customers such as Taiwan Semiconductor Manufacturing company, which has reported rapid growth due to increased investment in data centres fuelled by the AI boom.
Despite facing US pressure to limit technological advances in China and potential further restrictions that could impact its operations, ASML continues to thrive under the new leadership of Christophe Fouquet, with its shares increasing by 17% since he took over in April.
